Abstract: Fusarium oxysporum is an important fungal group among the soil bone microflora. These strains are well-known for inducing wilt or root rots in important agricultural crops worldwide and some occur only as a saprophytes in rhizosphere of plants. There are certain strains which are nonpathogenic and protect plants from pathogenic strains. Based on phenotypic and genetic studies F. oxysporum showed a great diversity among its populations. The nonpathogenic strains, which were first isolated from suppressive soils strains showed several modes of action against pathogenic strains and thus exploited as biocontrol agents. These nonpathogenic strains suppress pathogens by competing for nutrients in the soil, reduce their chlamydospore germination, compete for infection sites on the root and induce systemic resistance in plant when invade host plant species before the pathogen. The nonpathogenic strains are formulated in talc and charcoal based media and commercial formulations are also available. These strains of Fusarium has been successfully combined with other biocontrol agents to obtain a effective biocontrol of plant pathogens. For application of nonpathogenic Fusarium under field condition some additional research is needed in several areas including: field studies and integration into production systems; risk assessment; and genetic improvement of biocontrol agents.